1.Where an institution holds capital instruments or has granted subordinated loans, as applicable,liabilities that qualify as Commonown Equity Tier 1, Additional Tier 1 or Tier 2funds instruments in a financial sector entity temporarilyor as eligible liabilities instruments in an institution and where the competent authority deemsconsiders those holdings to be for the purposes of a financial assistance operation designed to reorganise and saverestore the viability of that entity,entity or that institution, the competent authority may waive on a temporary basis the provisions on deduction that would otherwise apply to those instruments.
2.EBA shall develop draft regulatory technical standards to specify the concept of temporary for the purposes of paragraph 1 and the conditions according to which a competent authority may deem those temporary holdings to be for the purposes of a financial assistance operation designed to reorganise and save a relevant entity.
EBA shall submit those draft regulatory technical standards to the Commission by 28 July 2013.
Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.